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Class 5 66>T 
Book ' Qr 5 

GopyriglitW 

COFlKIGHT DEPOSm 



FARM -RANCH BOOKKLLPING 

By JOHN HLNRY GILLS 



Copyright, 1928, by 

JOHN HEINRY GILES 

ALL. RIGHTS RESKRVKD 



PRINTED BY 

LODOVIC PRINTING CO. 

SAN AMTONIO. TEXAS 







HE AUTHOR OF THIS COURSE has writ- 
ten from actual knowledge . He was 
reared on a stock farm and has had 
experience in raising every kind 
of crop, stock and poultry. 

He has taught in the public schools, in 
leading academies, taught in and manag- 
ed prominent business colleges, and has 
been bookkeeper and auditor for commer- 
cial institutions. 

He knows the problems of the Man behind 
the Plow, and has the special training 
to write a system of Business Education 
that will meet his needs. 



©Cl.A66t397 



"v^ t ^ 




INTRODUCTION 




THE NEED 



of a system of plain, practical Farm-Ranch Bookkeeping is well 



known. Farming-Ranching is the most important industry in 
America, but lack of system and business method have lost the Farmer-Ranch- 
man millions of dollars every year. 



-K-tc-K-K**** 



OTHER BUSINESS MEN 



— Merchants, Bankers, etc., keep exact records on 



all their transactions and know just where they 
are making or losing money. They know just what each article has cost them 
and what they can afford to sell it for. When they are losing on any article, 
they will either change the loss into a profit, or give up the article entirely, 
for a small leak will sink the largest ship. 



■K-K-H-X+-K** 



VERY FEW FARMERS, 



however, know the cost of raising each kind of 



crop and stock. If they have gained or lost on 
anything, they often do not know how much or why. 



THE. PURPOSE 



-K-K-K-K-K-K-K* 
of this course in Farm-Ranch Bookkeeping is to give the 



country man a knowledge of business methods and system 
that will enable him to make a science of his work that will be a pleasure, and 
to make it a business that will yield a certain gain. 



MANY ENDORSEMENTS 



have been given this work by leading Farmers, 



Ranchmen, Merchants and Bankers. One prom- 
inent man says that if the farmers and ranchmen will take this course and 
use such knov/ledge in their business, they will be able to pay off the National 
Debt in ten years. 



ALL AGREE 



that young men who take this training will be more likely to 



remain on the soil, and to make useful, successful citizens, 
doing much to build up their own communities. 



FARM-RANCH BOOKKEEPING 



Farm -Ranch Bookkeeping, 

*** 

First Principles of Bookkeeping 

(1) Farm-Ranch Bookkeeping is the keeping of plain and correct records 
of everything done on the farm or ranch. 

(2) An Entry is writing down a record of any transaction or work that 
has been done. 

(3) An Account is a complete record on any person, crop, stock or thing. 
For instance you have an account with a certain person, or with a store, or 
with cotton or cows. 

(4) Every act or transaction, in business, has two sides. These are the 
debit (or "charge") side and the credit side. The debits are always in the left 
hand column headed "Dr." The credits are always in the right hand column 
headed "Cr." These two sides must always be equal. 

(5) The Key to Bookkeeping is learning when to charge and when to 
credit an account. 

(6) Any account is charged for any goods or thing of value on hand or 
received, or when it suffers a loss. 

(7) Any account is credited whenever it gives value, or when it shows a 
gain. 

(8) The Journal is a blank book where entries are first made. This 
journal has two columns; the one on the left for the debits, and the one on 
the right for the credits. 

(9) The Ledger is the book where the complete record of each account 
is kept. In actual business, all entries from the journal are each day trans- 
ferred to the proper account in the ledger, and to the same column (debit or 
credit) in which they were found in the journal. 

(10) A Trial Balance is the writing of all accounts in the ledger on a 
separate sheet of paper, in regular order, with all debits and credits of each 
account placed opposite that account in the proper column. As we have al- 
ready learned (See No. 4), the total of debits and credits in any transaction 
must be the same amount, we will find that the total of the debit and credit 
columns in the Trial Balance will be the same, if the work has been correct. 

(11) A Balance Sheet is a trial balance which also shows the loss and 
gain on every account. (See page 29). 



FARM-RANCH BOOKKEEPING 



(12) A Net Loss occurs when the total of the losses on the balance sheet 
is greater than the total of gains on the balance sheet. 

(13) A Net Gain occurs when the total of the gains on the balance sheet 
is greater than the total of the losses on the balance sheet. 

(14) A Bill is a record of a single transaction of goods purchased, usually 
made on a "bill head", with the name and address of the firm printed thereon. 

(15) A Statement is a total record of bills purchased in a given time, and 
is usually sent the customer at the end of each month. 

(16) An Invoice is a paper showing the sending of goods, with their prices, 
etc. 

(17) A Note is a wiitten promise to pay a certain amount at a certain 
time. It may or may not bear interest. It is usually payable in a certain 
place. 

(18) A Draft is an order on a second party to pay a third party a certain 
amount at a certain time. For instance A owes B, and C owes A, each amount 
being $50.00. A orders C to pay B, and when C does so, both debts are paid 
thereby. A Sight Draft is a draft that orders one to pay at once. A Time 
Draft orders one to pay at a certain later time. 

(19) A Contract is an agreement between two or more parties to do or 
not to do a certain thing. 

(20) All contrac'ts which run for more than one year, or which are for 
the sale of land, must be in writing. It is best to have all contracts in writing, 
to avoid misunderstandings, etc. 

(21) Every contract must have at least four principles, as follows: 

(22) a. Proper Parties only, can make contracts. Children, idiots, lu- 
natics, etc., cannot make a contract, unless it is something necessary for their 
welfare, and where there is no proper guardian to secure it. 

b. There must be value given and received by each party. 

c. Contracts must not violate law. No contract to violate the law 
or against the welfare of the public is binding. 

d. Contract must agree with itself. That is, one part must not 
promise a certain thing, and another part forbid that thing. 

(23) Every contract should be written in the plainest and simplest words. 
It should be addressed and dated. It should be carefully read before being 
signed. It should be signed by the proper parties. It is well to have it wit- 
nessed. 

(24) Notes Payable are the notes you will have to pay. 

(25) Notes Receivable are notes some other person will have to pay to 
you. 



FARM-RANCH BOOKKEEPING 



Lesson No. 1. 

(26) INSTRUCTIONS. This lesson is a quiz on the Principles of Book- 
keeping, as given on pages I and 2. It is very important that this lesson, and 
the next one, be well learned. 

Study the questions very carefully and when you know the answers write 
them from memory, and send in to you teacher. Your answers will be checked 
and graded, and if necessary, corrected, before being returned to you. 

Ques. 1. What is Farm-Ranch Bookkeeping? Ques. 2. Define Entry. 
Ques. 3. Define Account. Ques. 4. How many sides to every transaction? 
Ques. 5. Give the names of these sides and tell where they are. Ques. 6. 
What is the Key to Bookkeeping? Ques. 7. -When do you charge an account? 
Ques. 8. When do you credit an account? Ques. 9. What is the Journal and 
what is it used for? Ques. 10. Describe the Ledger. Ques. 11. Describe 
the trial balance. Ques. 12. What is a balance sheet? Ques. 13. When 
does a net loss occur? Ques. 14. 'VC'hen do you have a net gain? 

(27) Learn to be regular and prompt in your lessons. Mail these an- 
swers to your teacher just as soon as you know them. It will be the aim of 
your teacher to always have you supplied with one extra lesson, so that when 
you have sent in one lesson for approval, you can promptly begin work on 
the next one. You will therefore start on lesson 2 just as soon as you have 
mailed lesson 1. 

Lesson No. 2. 

(28) Ques. 1. What is a bill? Ques. 2. What is a statement? Ques. 
3. What is an invoice? Ques. 4. What is a note? Ques. 5. Do all notes 
bear interest? Ques. 6. Do notes mention the place in which they are to 
be paid? Ques. 7. What is a draft? Ques. 8. How many kinds of drafts 
and what are they? Ques. 9. What is a contract? Ques. 10. Which con- 
tracts must be in writing? Ques. 11. Should all contracts be in writing and 
why? Ques. 12. How many principles in a contract? Ques. 13. Give each 
of these principles; (a), (b), (c) and (d). Ques. 14. State some things one 
should be careful about in making a contract. (See No. 23). Ques. 15. What 
are notes payable? Ques. 16. What are notes receivable? 

IMPORTANT. Mail these answers as soon as you know them. Then re- 
view Lesson 1. If you remember Lesson I perfectly, you are ready to 

Commence your Bookkeeping. 

(29) Take up next lesson and begin work as instructed. 



FARM-RANCH BOOKKEEPING 



Lesson No. 3. 

(30) J. F. Gordon is a farmer and ranchman. He has never kept books 
or records on his crops and stock, and he decides that if he knew just how 
much he was making or losing on everything that he handles, he could make 
more money than he is now doing. 

Besides, the merchants and bankers with whom he does business often ask 
him, when he goes to them for credit, for information about his own affairs 
which he cannot give. Also, he must make a sworn report at the end of each 
year on his income ta.x. 

Mr. Gordon will be his own Bookkeeper and Manager of the farm and 
ranch and will devote all of his time to actual work in planting, cultivating, 
harvesting, looking after stock, etc. For these services, he will allow himself 
a salary of $150.00 per month. 

(31) The Journal will be used for making the first entries (See 8). From 
the journal all entries will be posted to the ledger (See 9). 

Taking Inventorj'. 

Nov. 1, 1917. 

(32) Mr. Gordon decides to take an Inventorj- of everything on the farm 
and ranch, that is to figure out just how much everything is worth in dollars 
and cents. He gets the following results: 

Real Estate (land), 1,000 acres valued at $50. per acre $50,000. 

Buildings and Fixtures (one 7-room dwelling house, worth $3,000; 
two tenant houses worth $1,500. each; barns and outbuildings, 

$2,000.; windmill and well, $300.;) total 8,300. 

Wagons and Trucks $2,000. Farm Machinery, all kinds $1,500. 

Mules, 20 head 3,000. Horses, 2 head 400. 

Jersey Cows, 8 head 600. Hogs, 40 head 400. 

Chickens, 150 75. Turkeys, 50 100. 

Cane, 50 tons 500. Corn, 800 bu. @ 80c 640. 

Oats, 500 Bu., 60c 300. Wheat, 50 bu. @ $2 100. 

(33) Entering Inventory on Journal: 

You will now enter all amounts given on inventory in journal. Model is 
given on next page. You should study this model until you know how and 
why each entry is made, and then make the entries from memory, using the 
blank journal sent you. 



FARM-RANCH BOOKKEEPING 



Lesson No. 3, continued. 

(34) Go through the journal, numbering the pages 1, 2, 3 etc. Then begin 
on page I. You have learned (See No. 6), that an account is charged for any- 
thing of value on hand. You will therefore charge the following accounts for 
the proper amounts, getting amount from inventory. (See Model Journal 
below). 

(35) Real Estate, $ ; Buildings and Fixtures, $... ; Wagons and 

Trucks, $ ; Farm Machinery, $ ; Mules, $ ; Horses, $ ; Jersey 

Cows, $ ; Hogs, $ ; Chickens, $ ; Turkeys, $ ; Cane, $ ; 

Corn, $ ; Oats, $ ; Wheat, $ 

(36) The Gordon Farm should be credited with all of above (See No. 7). 
Find the total of the above entries, which have been made in the debit column, 
and credit the J. F. Gordon Farm for the entire amount. (See Model Journal 
below). 



page 1 



MODEL JOURNAL 



1917 
Nov. 


1 Real Estate, inventory- 
Buildings and Fixtures, 
Wagons and Trucks 
Farm Machinery 
Mules 
Horses 
Jersey Cows 
Hogs 
Chickens 
Turkeys 
Cane 
Corn 
Oats 
Wheat 
The J. F. Gordon Farm, 


inv. 


Dr. 

$50,000. 

8,300. 






2,000. 




»• 


1,500. 




»> 


3,000. 




» 


400. 




»» 


600. 




j» 


400. 




jt 


75. 




<• 


100. 




}t 


500 




»» 


640. 




»» 


300. 




tf 


100. 




total 


1 



Cr. 



67,915 



FARM-RANCH BOOKKEEPING 8 

Lesson No. 3, continued. 
Nov. 1, 1917. 

(38) WRITE OUT A LEASE CONTRACT with P. M. Hood as follows: 
Gordon leases Hood 100 acres of land for one year, all to be planted in cotton. 
Gordon is to furnish seed, teams, feed for same, all necessary farming tools, 
etc. Hood is to plant and cultivate crop under direction of Gordon, doing all 
of the work in same, including picking of cotton. Gordon is to pay ginning. 
Cotton, including seed, is to be sold by Gordon, for the highest market price, 
as soon as ginned, proceeds of the same to remain in his hands until final set- 
tlement with Hood at end of year. Gordon is to advance Hood $60.00 per 
month for living expenses, which is to be charged against Hood and taken from 
his share of the crop at the end of the year. Writing of this contract will give 
you reason to study the principles of contracts (See No. 21, 22, 23). You will 
also find copy of this contract in this lesson. Study this contract carefully and 
then copy it word for word. The fact is, you must make two copies, one for 
Gordon and one for Hood. 

(39) Make the same kind of a contract (two copies) with C. L. Meyer, for 
a lease on 75 acres of cotton land. You should be able to write this contract 
with Meyer from memory. 

(40) Write a contract with John Schmidt for one year, employing him as 
a farm laborer. His salary shall be $75. per month, with board. How many 
copies of this contract should you write, and why? (See model in this lesson). 

(41) Write the same kind of a contract as the one above with Pelix Han- 
sen, for one year. How many copies? 

(42) Borrowed from Farmers and Stockmens Bank, for running expenses, 
$2,500. for six months at 8^', . Write out a note and sign it (see model in this 
lesson). Take this note to your bank and get credit for proceeds on passbook. 

(43) IMPORTANT. At the time a bank lends you money, it takes out 
the interest for the full time of the loan in advance. Now the interest on 
$2,500. at 8% for six months is $100. The bank would keep this $100., paying 
you only $2,400. This is called the proceeds of the note, and as you do not 
need it all at once, you deposit it in the bank. 

(44) MONEY IN THE BANK is just the same as cash on hand, so we will 
not open any account with the bank, but the Cash Account in the ledger will 
always show how much money you have in the bank. This will agree with the 
balance in your pass book. 

(45) Make the following entries in your Journal, of this transaction: 
Credit Notes Payable for the full amount of the note, $2,500. (See No. 24). 
Charge Interest and Discount for $100. Charge Cash for $2,400. (See Model 
Journal in this lesson). Do you see how nicely these charges balance with the 
credit? 



FARM-RANCH BOOKKEEPING 



1917 


Model Journal 


Dr. 


Cr. 


Nov. 1 


Real Estate, inventory 


50,000. 






Buildings and Fixtures, inventory 


8,300. 






Wagons and Trucks, inventory 


2,000. 






Farm Machinery, inventory 


1,500. 






Mules, 20 head, inventory 


3,000. 






Horses, 2 head, inventory 


400. 






Jersey Cows, 8 head, inventory 


600. 






Hogs, 40 head, inventory 


400. 






Chickens, 150, inventory 


75. 






Turkeys, 50, inventory 


100. 






Cane, 50 tons baled, inventory 


500. 






Corn, 800 bu., inventory 


640. 






Oats, 500 bu., inventory 


300. 






Wheat, 50 bu., inventory 


100. 




Nov. 30 


J. F. Gordon Farm, total value 




67,915. 


Nov. 30 


Notes Payable, 6 mo. note at Farmers and 








Stockmens Bank 




2,500. 




Interest and Discount on above 


100. 






Cash, proceeds of above note 


2,400 




Nov. 30 


Cash, by sunds. 




470. 




F. M. Hood, personal, cash on contract 


60. 






C. L. Meyer, personal, do 


60. 






Expense, salaries of Schmidt, Hansen, Gordon 








and board for Schmidt and Hansen 


350. 




Nov. 30 


Farm Machinery, 1 grain drill 


165. 






Cash, by above 




165. 


Nov. 30 


Cash, to sunds. 


81.30 






Chickens, eggs sold during month 




16.30 




Jersey Cows, milk sold during month 




65. 


Nov. 30 


Expense, by sunds. 




439. 




Wheat, breaking 30 acres 


90. 






Wheat, 40 bu. seed @ $2. 


80. 






Corn, breaking 85 acres @ $2. 


170. 






Hood Lease, breaking 30 acres @ 1.50 


45. 






Meyer Lease, breaking 20 acres @ 1.50 


30. 






Chickens, grain fed them, etc. 


4. 






Turkeys, grain fed them 


3. 






Hogs, grain fed them 


12. 






Jersey Cows, cane, etc 


5. 




Nov. 30 


Expense, to sunds. 


1,540. 






Corn, to be used for feed, etc. 




640. 




Cane, to be used for feed, etc. 




500. 




Oats, to be used for feed, etc. 




300. 




Wheat, to be used for feed, etc. 




100. 


Nov. 30 


J. F. Gordon, personal used for family 


50.50 






Chickens, eggs used 




4. 



Turkeys, 2 eaten 

Jersey Cows, milk and butter 

Hogs, 1 hog, 225 lbs. @ 12c 



73,160.80 



7.50 
12. 
27. 

73,160.80 



FARM-RANCH BOOKKEEPING 10 

Lesson No. 3, continued. 
Nov. 1, 1917. 

(46) The FARM has 600 acres in cultivation and 400 acres in pasture 
land. The following acreage will be given different crops for year: Cotton, 
(including the 100 acres in Hood Lease, and 75 acres in Meyer Lease) 350 
acres; Oats, 70 acres; Wheat, 30 acres; Produce, 9 acres; Peanuts, 12 acres: 
Feterita, 4 acres; Cane (sorghum, seed etc.), 25 acres; Corn, 100 acres. 

Nov. 30, 1917. 

(47) Pay out cash as follows: Hood and Meyer, $60. each, according to 
contract with them (No. 38, 39) ; Schmidt and Hansen, $75. each, according to 
contract (No. 40, 41); Gordon, his month's salary of $150. (No. 30). Also 
pay board of Schmidt and Hansen for one month (No. 40, 41), $50. 

(48) Make above entries on Journal. (See Model Journal). Cash will be 
credited for the entire amount, because it gives value. (No. 7). Hood and 
Meyer will each be charged with $60. Expense will be charged with the total 
amount paid Schmidt, Hansen, and Gordon, and with the board of hired men. 

(49) Bought one grain drill for cash, amount $165. Charge Farm Ma- 
chinery for this amount and credit cash. (No. 6, 7). 

(50) Total amount of cash received during month: From eggs (credit 
chickens), $16.30; from Milk (credit Jersey Cows), $65.00. Charge cash with 
entire amount. 

(51) As about all Cane, Corn, Oats and Wheat on hand will be fed to stock 
and poultry, it will be best to make the following entries NOW: Credit Cane 
with $500.;Corn $640.; Oats, $300.; Wheat, $100. Charge Expense with total 
of above, $1,540. 

(52) Charge Wheat with breaking and seeding 30 acres @ $3. per acre, 
total, $90.; charge Wheat with 40 bu. seed @ $2. per bu., total $80.; charge 
corn with breaking 85 acres @ $2. per acre, total, $170.; charge Hood 
Lease with teams, feed ?.nd tools for breaking 30 acres land @ $1.50 per 
acre, total, $45.; charge Meyer Lease with teams, feed and tools for breaking 
20 acres land, @ $1.50 per acre, total, $30.; Charge Chickens with $4. grain 
fed them; charge Turkeys $3. grain; charge Hogs $12. grain; charge Jersey 
Cows $5. feed. Credit Expense with the total of above. 

(53) IMPORTANT. Accounts are to be kept with Hood Lease and with 
Meyer Lease charging each with all expenses connected therewith. This is to 
find the value of the "Tenant" or "Renter" system, and has nothing to do with 
Hood or Meyer personally. 



FARM-RANCH BOOKKEEPING H 

Lesson No. 3, continued. 

(54) Gordon's family used following during month: Eggs, $4.; Turkeys, 
(two eaten), $7.50; Milk and Butter, $12.; Hogs, (1 butchered), $27. Charge 
J. F. Gordon, personal, with total of above. Credit Chickens with $4., Turkeys 
with $7.50, Jersey Cows with $12., Hogs with $27. 

Nov. 30, 1917. 

(55) POSTING FROM THE JOURNAL to the Ledger. This is a most 
important work, and if well understood, will mean much in this course. 

(56) The first step is to open accounts in the ledger. Go through the 
ledger and number each page 1, 2, 3, etc. At the top of page one write "J. F. 
Gordon Farm"; one-third down the page write "Real Estate''; one-third further 
down write "Buildings and Fixtures". In the same manner you will write the 
names of all the accounts, allowing one-third of a page for each of them, ex- 
cepting Jersey Cows, Hogs, Chickens, Cash and Expense. For these last you 
will give a full page. 

(57) You will find the first entry on your Journal to be "Real Estate." 
The amount is $50,000. in the debit column. Turn to the Real Estate account 
in the ledger, page 1, and on the left side write the year and date, then write 
the amount in the left side column (See Model Journal, for this and other 
entries). Then post Buildings and Fixtures, Wagons and Trucks, Farm Ma- 
chinery, Mules, Horses, Jersey Cows, Hogs, Chickens, Turkeys, Cane, Corn, 
Oats, Wheat in the same manner, under the proper account. Credit the J. F. 
Gordon Farm with the total, on the right side of the ledger. 

(58) In like manner, post all other items from the Journal to the Ledger 
for the month of November. 



FARM-RANCH BOOKKEEPING 12 

Lesson No. 3, continued 

(59) LEASE CONTRACT. 

Kingsburg, , Nov. 1, 1917. 

THIS LEASE CONTRACT entered into this day between J. F. Gordon, 

Kingsburg, Mason County, , and F. M. Hood, of Kingsburg, 

Mason, County, , as follows: 

Said Gordon hereby leases said Hood One Hundred (100) acres of cultivat- 
ed land, from his farm located five miles south of Kingsburg, said One Hundred 
acres being that southwest corner of the Gordon Farm separately fenced, and 
known as "The Old Miller Place." This One Hundred acres is all to be planted 
in cotton, by Hood, as provided in following paragraphs. 

Hood agrees to cultivate the cotton on this lease under the direction of 
Gordon, which shall be according to approved methods of cotton raising. Hood 
agrees to keep the cotton picked to such extent that it will not be seriously 
damaged by falling out, etc., even though he may have to hire it picked. Should 
Hood fail to keep up with picking as herein provided, Gordon is hereby granted 
the right to employ pickers, at the current rate, to pick as much cotton as may 
be necessary, charging such expense to Hood, and deducting it from his share 
of the crop. 

Gordon is to furnish free, cotton seed for planting, teams and machinery 
for cultivating, and feed for teams. He is also to haul all cotton raised on 
this lease to the gin, without charge; and is to pay for the ginning of all such 
cotton. 

Gordon is to advance Hood $60. per month, cash, payable the last day of 
each month, for Hood's living expenses. The entire amount so advanced, is 
to be charged against Hood and deducted from his share of the crop. 

Gordon is to have charge of the selling of all cotton and seed raised on this 
lease, and (unless otherwise agreed upon in writing) shall sell same within one 
week from ginning. The proceeds of such sales are to be deposited in Gor- 
don's name. 

This contract shall be in force for one year, beginning Nov. 1, 1917, and 
ending Oct. 31, 1918. On October 31, 1918, Gordon and Hood shall have set- 
tlement on following basis: Gordon shall pay Hood in cash one-half (V^) of 
the gross proceeds derived from the total sales of cotton and seed raised on 
this lease, less the $60. per month advanced Hood during the contract (and less 
the cost of such picking, if it has been necessary for Gordon to hire some of 
this cotton picked as provided herein). The remainder of money derived from 
sale of cotton from this lease, shall be Gordon's. 

Signed in duplicate at Kingsburg, Mason County, , this 1st day 

of Nov., 1917. 

(Signed) J. F. Gordon 

(Signed) F. M. Hood. 

Witness: 

R. M. King. 



FARM-RANCH BOOKKEEPING 13 

Lesson No. 3, continued 

(60) FORM OF NOTE 

$2,500.00 Kingsburg, , Nov. 1, 1917. 

Six months after date, without grace, I, we or either of us, promise to pay 
to the order of the FARMERS AND STOCKMENS STATE BANK, of Kingsburg, 

at their office in Kingsburg, Twenty-five Hundred and no/100 Dollars, 

for value received, with interest at 8% per annum until paid, and ten per cent 
additional on amount of principal and interest unpaid, as attorney's fees, if 
placed in the hands of an attorney for collection, or in the event judicial pro- 
ceedings are instituted to enforce the collection thereof. The makers and 
endorsers hereof severally waive protest, and consent that the time of payment 
may be extended without notice. 
Due May 1, 1918. (Signed) J. F. Gordon 

(61) CONTRACT FOR FARM LABOR 

Kingsburg, , Nov. 1, 1917. 

THIS CONTRACT entered into this day between J. F. Gordon, proprietor 
of the J. F. Gordon Farm, located 5 miles south of the town of Kingsburg, 

State of , and John Schmidt, of the town of Kingsburg, State of 

, as follows: 

Said Gordon employs said Schmidt to work on above farm for a period of 
one year, beginning with current date, for which services Gordon agrees to 
pay Schmidt the sum of Seventy-five Dollars ($75.00) per month, payable on 
the last day of each month during the contract. 

Said Schmidt, in return for the above compensation, agrees to work faith- 
fully and cheerfully, as a farm laborer on the above farm, carefully obeying 
the instructions of said Gordon, and striving to further his interests, during 
the life of the contract. 

Signed in duplicate in the town of Kingsburg, County of Mason, State of 

, this 1st day of Nov., 1917. 

(Signed) J. F. Gordon. 

(Signed) John Schmidt. 

Witness : 

R. M. King. 



FARM-RANCH BOOKKEEPING 



14 



Lesson No. 3, continued. 

(62) TAKING A TRIAL BALANCE. When you have posted all entries 
for November according to instructions, run through the ledger and place at 
the bottom of the debit column of each account the total of that column, in 
small pencil figures. Do the same with the credit columns. 

Write the names of the accounts in the ledger, in regular order, on the first 
page of your trial balance book. Opposite each account write in the debit 
column of the trial balance book the total amount penciled in that column in 
the Ledger. In like manner enter amounts found in credit column of Ledger, 
on credit side of Trial Balance. (Model below). 

Add the figures in the debit column of the trial balance, and you will find 
they make the same total as that of the credit column of the trial balance, if 
your work has been correct. 

RULE UP this Trial Balance according to Model below. 



Trial Balance Nov. 30, 1917. (In Lesson 3). 



J. F. Gordon Farm 




67,915. 


Real Estate 


50,000. 




Buildings and Fixtures 


8,300. 




Wagons and Trucks 


2,000. 




Farm Machinery 


1,665. 




Mules 


3,000. 




Horses 


400. 




Jersey Cows 


605. 


77. 


Hogs 


412. 


27. 


Chickens 


79. 


20.30 


Notes Payable 




2,500. 


Corn 


170. 




Wheat 


270. 


100. 


Interest and Discount 


100. 




F. M. Hood, Tenant 


60. 




C. L. Meyer, Tenant 


60. 




Hood Lease 


45. 




Meyer Lease 


30. 




Turkeys 


103. 


7.50 


Expense 


1,890. 


439. 


Cash 


1,846.30 




J. F. Gordon, personal 


50.50 






71,085.80 


71,085.80 



MAKE YOUR REPORT on Lesson 3, as follows: Send your teacher your 
Ledger, Journal and Trial Balance Book. 

Also send in copy of following: Lease with F. M. Hood; Lease with C. L. 
Meyer; Contract with John Schmidt; Contract with Felix Hansen; Note to 
Farmers and Stockmens Bank. Be sure to check this report carefully and see 
that you have left nothing out. Mail promptly and begin on next lesson. 



FARM-RANCH BOOKKEEPING 15 

Lesson No. 4. 

• 

(64) IMPORTANT. Throughout the remainder of this set the total am- 
ounts of all business done during the month, will be given at the end of each 
month. 

Dec. 31, 1917. 

(65) Total cash received for month as follows: Eggs, $88. (just before 
Christmas and eggs were high) ; Milk, $80.; 15 Turkeys, 225 lbs. @ 30c; Hogs, 
580 lbs. @ 12c. Credit each of these accounts for the proper amounts (figure 
them out, for practice). Charge Cash with the total. 

(66) Paid out cash for month as follows: Hood's and Meyer's drawing 
accounts, Schmidt's, Hansen's and Gordon's salaries, and board. Make same 
entries on journal as in November. 

(67) Traded Cane to White Elevator Co. for following: 1,000 lbs. wheat 
bran @ $3. per C (hundred) ; 500 lbs. cotton seed meal @ $4. per C; 2,000 lbs. 
corn bran @ $2.50 per C; figure this out. You will find the total amount to 
be $100. As all of this is to be fed Jersey Cows, you will charge Jersey Cows 
for $100. No cash was used, but Cane paid for the bill, therefore Expense 
will be credited with $100. Why credit Expense? 

(68) Charge Chickens with $6. feed; charge Turkeys with $7. feed; charge 
Hogs with $100. feed; charge Jersey Cows with $25. feed. Credit Expense with 
total amount. (No. 52). 

(69) Gordon's family used following during month: Eggs, $8; Turkeys, 
$9; Hogs, 450 lbs. @ 12c (figure it out) ; Milk, $12. Make entries same as you 
did in November. 

(70) Credit Expense with following: Corn, breaking 15 acres @ $2.; 
Cotton, breaking 25 acres @ $2.; Oats, breaking 70 acres @ $2.; Produce, 
breaking 9 acres @ $3.; Hood Lease, breaking 40 acres @ $1.50; Meyer Lease, 
breaking 40 acres @ $1.50. Charge each account as you did in November. 

(71) Post all items to ledger, the same as in Noven;iber. Then take trial 
balance same as in November. 

(72) MAKE YOUR REPORT on Lesson 4 as follows: On a separate sheet 
of paper, send copy of your Journal Entries for December only; on another 
sheet of paper send copy of your trial balance for December. Ask any ques- 
tions you wish. 

Mail this report promptly and begin on next lesson. 



FARM-RANCH BOOKKEEPING 1^ 

Lesson No. 5. 

Jan. 31, 1918. 

(73) Received cash for month: Eggs, $42; Milk, $80; Hogs, 2,300 lbs. @ 
lie. Make proper entries in same manner as last month. 

(74) Paid out cash for month: Drawing accounts, salaries and board the 
same as December; Farm Machinery, for repairs, etc., $18; Wagons and Trucks, 
gas and repairs, $23. Make entries same as last month. 

(75) Credit Expense with following total, and charge each account, same as 
December: Chickens, $5; Turkeys, $2; Hogs, $100; Jersey Cows, $40; Oats, 
harrowing and drilling 70 acres, $50; Oats, 100 bu. seed @ 60c; Feterita, break- 
ing 4 acres @ $2; Cane, breaking 25 acres @ $2; Hood Lease, breaking 30 acres 
@ $1.50; Meyer Lease, breaking 15 acres @ $1.50; Cotton, breaking 100 acres 
@ $2. 

(76) Gordon's family used following during month: Eggs, $4; Milk, $11; 
Hogs, 1,000 lbs. @ lie. Make entries as in last month. 

(77) Post all entries for month, and take trial balance. 

(78) MAKE YOUR REPORT on Lesson 5 as follows: On separate sheet 
of paper send in copy of journal for month. On another sheet of paper send 
in copy of trial balance. Are you having any trouble of any kind, if so what 
is it? Mail this report at once. 

MM****** 

Lesson No. 6. 

Feb. 28, 1918. 

(79) Received cash for month: Eggs, $35; Milk, $80. Make usual entries. 

(80) Paid out cash for month: Drawing accounts, salaries and board as 
usual; wagons and trucks, repairs, tires, gas, $55; farm machinery, repairs, $5.90. 
Usual entries. 

(81) Credit Expense with total and charge each account as usual: Chick- 
ens, $7; Turkeys, $3; Hogs, $12; Jersey Cows, $20: Cotton, breaking 50 acres 
@ $2; Peanuts, breaking 12 acres @ $2; Produce, harrowing 9 acres @ 50c; 
Hood Lease, harrowing 100 acres @ 35c; Meyer Lease, harrowing 75 acres @ 
35c; Corn, harrowing 175 acres © 50c. 

(82) Gordon's family used following during month: Eggs, $5; Milk $12. 
Usual entries. 

(83) Bought 1 Incubator on 60 days time from the Peerless Hardware Co., 
for $75. This incubator is to be used for chickens, so you will charge that 
account with $75. Peerless Hardware Co. gave you value without receiving 
anything in return, hence you will credit them for $75.00. 

(84) Put aside four sacks of bran to be fed Chickens in future. Charge 
Chickens with this amount. As this bran had already been charged to Jersey 
Cows, you will now credit Jersey Cows for $8. 

(85) Post to ledger and take trial balance, same as last month. 

(86) MAKE YOUR REPORT to your teacher the same as for January. 



FARM-RANCH BOOKKEEPING 17 

Lesson No. 7. 

March 31, 1918. 

(87) Received cash for month : Eggs, $33; Milk, $80. Make usual entries. 

(88) Cash paid out for month: Drawing accounts, salaries and board as 
usual; wagons and trucks, $4.50; farm machinery, $5.40; Cotton, seed for plant- 
ing, $125; Feterita, seed, $5.; Produce, seed (including potatoes, etc.), $55; 
Cane, seed, $45. 

(89) The Peerless Hardware Co. will give a discount of 5% for paying 
cash now. Discount their bill. Five per cent of $75.00 will be $3.75. Credit 
interest and discount with $3.75. This will leave $71.25 to be paid in cash, so 
you will credit cash for this amount. Then as Peerless Hardware Co. have 
received payment in full, you will charge them with $75. Below is how this 
will appear on your journal: 

Peerless Hardware Co., payment in full 75.00 

Interest and Discount, 5% on above 3.75 

Cash, amount paid on above account 71.25 

(90) Credit Expense with total of following and charge each account with 
proper amount: Chickens, $6; Turkeys, $3; Hogs, $10; Jersey Cows, $20: 
Corn, planting 100 acres @ 50c; Produce, planting 9 acres, $20; Hood Lease, 
planting 50 acres @ 80c; Meyer Lease, planting 50 acres @ 80c; Feterita, 
planting 4 acres, harrowing, rolling, etc., $8; Cane, 25 acres @ 50c; Cotton, 
planting 100 acres @ 50c. 

(91) Gordon's family used following during month: Eggs, $4.30; Milk, 
$12. Enter correctly. 

(92) Post to ledger and take trial balance. 

(93) MAKE YOUR REPORT on Lesson 7, the same as usual. Always ask 
for any information you may need. 



FARM-RANCH BOOKKEEPING 18 

Lesson No. 8. 

Apr. 30, 1917. 

(94) Cash rec'd. for month: Eggs, $34; Milk $80. Usual entries. 

(95) The note for $2,500. is now due at the Farmers and Stockmens Bank. 
Gordon also needs money to finance the harvesting of his crops. He will there- 
fore borrow $4,000. from the First National Bank for six months, at 8%. 

(96) Make entries for this loan the same as you did for the bank loan in 
November. Also write out note to above bank for the proper amount. 

(97) Pay the Farmers and Stockmens Bank $2,500, in full of note given 
November 1st. As you paid the interest on this note in advance, at the time 
you borrowed the money, there will be no interest to pay now. When you 
borrowed this money, you credited Notes Payable with $2,500. Now that you 
are paying this note, you charge Notes Payable with $2,500. on the journal, and 
give Cash credit for $2,500. on the journal. Be sure to get this note back 
marked "Paid." 

Total Cash paid out for month: Drawing accounts, salaries and board, as 
usual; peanuts, seed, $44; farm machinery, 2 cultivators, and one cotton plant- 
er, $303; wagons and trucks, $8; expense, extra labor, $65. 

(98) Credit Expense with total of following and charge each account with 
proper amount: Cotton, planting 75 acres @ 50c; Cotton, plowing 100 acres 
@ 50c; Produce, planting and cultivating, $25; Peanuts, planting and cultivat- 
ing, $18; Corn, plowing 100 acres @ 50c; Hood Lease, plowing and planting, 
$60; Meyer Lease, plowing and planting, $40; Chickens, $6; Turkeys, $3; Hogs, 
$8; Jersey Cows, $20; Cane, plowing, etc., $1. 

(99) Gordon's family used following during month: Eggs, $4; Milk, $12; 
Produce (vegetables), $5. Usual entries. 

(100) Post to ledger and take trial balance. 

(101) MAKE YOUR REPORT on Lesson 8 as follows: Mail teacher your 
ledger, trial balance, and journal, just as they are. Also send in note for $4,000. 
you have made out to First National Bank. Be sure that you do all of this. 



FARM-RANCH BOOKKEEPING 1^ 

Lesson No. 9. 

May 31, 1918. 

(102) Cash rec'd. for month: Eggs, $32.00; Milk, $80.00; Produce, (vege- 
tables, etc.), $70.00. 

(103) Cash paid out for month: Drawing accounts, salaries and board; 
Wagons and Trucks, $20.00; Cotton, labor in cultivation, $150.00. 

(104) Credit Expense and charge each account as follows: Chickens, 
$5.00; turkeys, $3.00; hogs, $8.00; Jersey cows, $15.00; cotton, plowing, etc., 
$100.00; corn, plowing, etc., $75.00; produce, $20.00; feterita, $8.00; peanuts, 
$12.00; Hood lease, plowing, $40.00; Meyer lease, plowing, $30.00; cane, labor 
weeding, etc., $4.00. 

(105) Gordon's family used following during month: Eggs, $5.00; Milk, 
$12.00; produce (vegetables), $8.00. 

(106) Fed to Hogs, $5.00 worth of Produce (vegetables); fed to Jersey 
cows, $5.00 worth of produce. According to No. 6 and 7, you should charge 
hogs, and Jersey cows, $5.00 each; and credit produce, $10.00. 

(107) Post to ledger and take trial balance, after making proper entries. 

(108) MAKE YOUR REPORT as follows: On a separate sheet of paper, 
send in copy of your journal for month of May only; on another sheet, send 
in copy of your trial balance for May. 



FARM-RANCH BOOKKEEPING 20 

Lesson No. 10. 

June 30. 1918. 

(109) Cash rec'd. for month: Eggs and Friers, $35.00; Milk, $80.00; Pro- 
duce (melons, potatoes and vegetables) $225.00. 

(110) Cash paid out for month: Drawing accounts, salaries and board; 
oats (binder twine, $11.00; labor in harvesting, $28.00), total $39.00; wheat 
(twine, $5.00; labor, $12.00), total $17.00; farm machinery, 1 McCormick Self- 
Binder, $185.00; wagons and trucks, $15.00; cotton, extra labor, $40.00; corn, 
extra labor, $25.00. 

(111) Credit Expense with total of following and charge each account with 
proper amount: Cotton, labor, $30.00; produce, labor, $45.00; feterita, labor, 
$10.00; peanuts, labor, $8.00; chickens, $8.00; turkeys, $6.00; hogs, $4.00; Jer- 
sey cows, $5.00; oats, labor in harvesting, $70.00; wheat, labor in harvesting, 
$30.00; Hood lease, plowing, etc., $40.00; Meyer lease, plowing, etc., $30.00. 

(112) Fed Hogs Cane, $5.00; fed Hogs, Produce, $10.00. 

(113) Fed Jersey Cows, Cane, $10.00; fed Jersey Cows, Produce, $10.00. 

(1 14) Put $200. worth of sheaf oats in barn for feed. Charge Expense and 
credit Oats for $200. Why do you do this? 

(115) Gordon's family uses following for month: Eggs, $14.50; Milk, $14; 
Produce, $15. 

(116) When you have posted all of these entries correctly, take trial 
balance. 

(117) MAKE YOUR REPORT on Lesson 10 in the same manner as you 
reported in May. 



FARM-RANCH BOOKKEEPING 21 

Lesson No. 11. 

July 31, 1918. 

(118) Rec'd. cash as follows: Oats, 2,000 bu. @ 50c; Wheat, 400 bu. @ 
$2; Eggs, $42; Friers, $50, (all credited to chickens); Milk, $80; Produce, 
$403; Cane, 10 tons @ $8. 

(119) Cash pajd out for month: Salaries, drawing accounts and board; 
Oats (labor in threshing, $65; sacks, $40; threshing 2,500 bu. @ 5c), total 

$ (figure it out); Wheat (labor, $35; sacks, $40; threshing 600 bu. 

@ 10c), total $ (figure it out); Cane, labor, etc., $10; Wagons 

and Trucks, $25. 

(120) Credit Expense with total of following and charge each account with 
the proper amount: Produce, labor, $50; Peanuts, labor, $5; Chickens, $2; 
Hogs, $2; Jersey Cows, $10; Hood Lease, plowing etc., $40; Meyer Lease, plow- 
ing, etc., $30; Oats labor in harvesting, $140; Wheat, labor in harvesting, $60. 

(121) Credit Produce with $40., as follows: Fed Hogs, $20; fed Jersey 
Cows, $20. Which accounts do you charge? 

(122) Fed Hogs Cane, $8. Which account do you charge and which do 
you credit? 

(123) Gordon's family used following: Eggs, $6.25; Friers, $10; Milk, 
$13; Produce, $20. 

(124) When you have made all of above entries correctly, post to ledger 
and take trial balance. 

(125) MAKE YOUR REPORT on Lesson 1 1 in the same way as last month. 
Be sure you send it in promptly. 



FARM-RANCH BOOKKEEPING 22 

Lesson No. 12. 

Aug. 31, 1918. 

(126) Rec'd. cash during month: Eggs, $30; Milk $80; Produce, $102; 
Cotton, 5 bales, 2,500 lbs. @ 30c; Hood Lease, 3 bales, 1,500 lbs. @ 30c, and 
3,000 lbs. seed @ $50. per ton; Meyer Lease, 2 bales, 1,000 lbs. @ 30c, and 2,000 
lbs. seed @ $50. per ton. Figure all of these amounts very carefully and make 
usual entries. 

(127) Paid out cash for month: Drawing accounts, salaries and board; 
Cotton, picking 3 bales, 4,500 lbs. @ 75c per C (hundred), ginning 5 bales @ 
$5; also $15 for sacks, total $73.75; Hood lease, ginning 3 bales @ $5; Meyer 
Lease, ginning 2 bales @ $5 and extra labor; Wagons and Trucks, $8. 

(128) Credit Expense for total and charge each account for proper amount: 
Produce, labor, $20; Peanuts $5; Chickens, $4; Turkeys, $2; Hogs, $4; Jerseys, 
$8; Cotton, picking 3,000 lbs. @ 75c, and hauling 5 bales to gin @ $5; Hood 
Lease, hauling cotton to gin, $15; Meyer Lease, hauling cotton to gin, $10; 
Corn, cutting and hauling corn fodder, $100. 

(129) Fed $15 produce to Hogs; fed Jersey Cows, $10 worth of produce. 
What accounts do you charge, and which account do you credit? 

(130) Gordon's family used following: Eggs and friers, $10; Produce, 
$10; Milk, $12. 

(131) Make proper entries, post to ledger, and take trial balance. 

(132) MAKE YOUR REPORT as usual, on Lesson 12. 



FARM-RANCH BOOKKEEPING 23 

Lesson No. 13. 

Sept. 30, 1918. 

(133) Rec'd. cash as follows: Eggs, $32; Milk $80; Cotton, 17 bales, 8,500 

lbs. @ 25c; also 8I/2 tons seed @ $50 per ton, total $ (figure it 

out); Hood Lease, 10 bales, 5,000 lbs. @ 25c, and 5 tons seed @ $50; Meyer 
Lease, 8 bales, 4,000 lbs. @ 25c, and 4 tons seed @ $50; Corn, 2,000 bu. @ 90c. 

(134) Paid out cash as follows: Drawing accounts, salaries and board; 
Cotton, picking 24,000 lbs. @ 90c, and ginning 17 bales @ $5; Hood Lease, 
ginning 10 bales @ $5; Meyer Lease, ginning 8 bales @ $5; Wagons and Trucks, 
$30; Jersey Cows, bran, meal, etc., bought and placed in barn, $75. 

(135) Credit Expense with total and charge each account with proper 
amount: Chickens, $5; Turkeys, $4; Cotton, picking 1,500 lbs @ 90c, and 
hauling 17 bales @ $5; Corn, gathering 3,500 bu., $125; Cane, cutting, shocking, 
hauling and baling, $100; Hood Lease, hauling 10 bales @ $5; Meyer Lease, 
hauling 8 bales @ $5. 

(136) Hogs and Jersey Cows ran in corn field. Estimated that Hogs ate 
$50 worth of corn, and that Jerseys ate $20 worth of corn and grass. Charge 
Hogs and Jerseys for prope"- amounts and credit Corn for total. 

(137) Gordon's family used following: Eggs, $6; Milk, $12; Produce, $10. 

(138) Make these entries correctly, post to ledger and take trial balance. 

(139) MAKE YOUR REPORT as usual, trying your utmost to be perfectly 
correct. 



FARM-RANCH BOOKKEEPING 24 

Lesson No. 14. 

Oct. 31, 1918. 

(140) Rec'd. cash as follows: Eggs, $34, and 200 chickens @ 75c; Milk, 
$80; Cotton, 35 bales, 17,500 lbs. @ 20c, and 17Vo tons seed, $600; Hood Lease, 
20 bales, 10,000 lbs. @ 20c, and ten tons seed @ $40; Meyer Lease, 15 bales 
7,500 lbs. @ 20c, and 7I/2 tons seed @ $40; Hogs, 20 head, 3,000 lbs. at 12c; 
Feterita, 200 bu. @ 90c; Peanuts, baled, $300; Cane, 50 bu. seed @ $2; Produce, 
150 bu. sweet potatoes @ $1; Turkeys, 100 @ $2.50; Corn, pumpkins in corn 
field, $50. 

(141) Paid out cash as follows: Drawing accounts, salaries and board; 
Cotton, picking 52,500 lbs. @ $1, and ginning 35 bales @ $5; Hood Lease, gin- 
ning 20 bales @ $5; Meyer Lease, ginning 15 bales at $5; Hogs, shipping 
charges, $25; Feterita, threshing same, $25; Peanuts, baling, $25; Cane, thresh- 
ing 75 bu. seed @ 10c; Wagons and Trucks, $40. 

(142) Credit Expense and charge other accounts as follows: Cotton, haul- 
ing 35 bales @ $5; Meyer Lease, hauling 15 bales @ $5; Hood Lease, hauling 
20 bales @ $5; Hogs, labor, etc., $25; Peanuts, labor, etc., $50; Feterita, labor, 
$25; Cane, labor, $75; Turkeys, shipping, etc., $10; Corn, gathering pumpkins, 
etc., $15; Produce, $40. 

(143) Credit Corn with following total: Fed Hogs (corn and pumpkins 
out of corn field) $140; Turkeys, fed $9; Chickens, fed $9; Jersey Cows, fed 
them $10 pumpkins. Charge each account with the proper amount. 

(144) Gordon's family used following: Eggs and Chickens, $8; Milk, $12; 
Turkeys, eaten, $8; Produce, $10. 

(145) Paid following in cash: State and County taxes, $550; note at the 
bank for $4,000. You will credit cash for total of above. Charge State and 
County taxes for $550, and charge Notes Payable for $4,000. 

(146) Make proper entries, post to ledger and take trial balance. 



FARM-RANCH BOOKKEEPING 25 

Lesson No. 15. 

(147) PAYING OFF HOOD AND MEYER. The Hood Lease account on 
the Ledger now shows a debit of $735, and a credit of $4425. As Hood is to 
get one-half of the proceeds from his lease, you will credit him for one-half of 
$4425., $2212.50. Do this in the following manner: On the journal, enter 
"F. M. Hood, personal, Cr. $2212.50"; "Hood lease. Dr. $2212.50.'' Post this 
to the ledger and it will show Hood's personal account, total debit, $720; total 
credit, $2212.50. Of course, before you pay Hood, you must collect from him 
this $720, which is the money you have advanced at the rate of $60 per month. 
The difference between the debit and credit sides of this account is $1492.50. 
You will enter on your journal: "F. M. Hood, personal, in full payment of ac- 
count, $1492.50," and credit cash for the same amount. 

(148) You will realize that Meyer will be settled with on the same principle 
as Hood. Turn to the Meyer Lease account, and the C. L. Meyer, personal, ac- 
count, and handle them in just the same manner as you did with Hood's. 

HOW TO FIND YOUR PROFITS OR LOSSES. 

(149) You have now come to the most important part of your record keep- 
ing. You should be able to figure just how much you have lost or gained on 
each account, and what your total gain or loss is. 

(150) Some of the accounts may have become more valuable during the 
year. On the other hand some of them may have become less in value. Some 
of them may have neither increased or decreased in value. We want to go 
through the ledger and estimate the value of those things on hand. This is 
called taking an inventory. 

(154) The first account we will consider is Real Estate. This has not 
changed in value during the year. Write on the credit side in red ink, the date 
and "inventory $50,000". There will be no loss or gain on this account, of 
course. 

(152) Buildings and Fixtures have decreased 5% in value. Taking 5% 
from the total value of $8,300, leaves an inventory of $7,885., which you will 
write on the credit side of the account in red ink, just as you did in Real Es- 
tate. It is easy to see that there has been a 5% loss on this account, which 
would be $415. Write on the credit side in red ink, the date and "net loss 
$415. NOTE. You will notice that you would have gotten the net loss just 
the same by subtracting the credit side of the account from the debit. 



FARM-RANCH BOOKKEEPING 26 

Lesson No. 15, continued. 

(153) Wagons and Trucks are worth $1,800. This is the inventory. As 
Wagons and Trucks cost, including repairs, etc., $2228.50, the net loss will be 
$428.50. Enter same as Buildings and Fixtures. 

(154) Farm Machinery is inventoried at $1,350. This machinery cost, in- 
cluding repairs, etc., $2,182. 30, leaving a net loss of $832.30. Enter as usual. 

(155) Mules are inventoried at $2,550, leaving a net loss of $450. Figure 
it out and enter. 

(156) Interest and Discount is charged with $260, and credited with $3.75. 
This makes a net loss of $256.25. Write, in red ink, on the credit side, "net 
loss, $256.25." 

(157) Expense is debited with $6,005, and credited with $4,696.75. This 
makes a net loss of $1,308.25. Enter same as in Interest and Discount. 

(158) Feterita shows an inventory of $25. Write this on the credit side 
in red ink, which added to the credit of $180, makes $205. total credit. The 
total debit, or cost, of this feterita, is $89. The difference between $89. (debit) 
and $205. (credit) is $116. This is the net gain. Write on the debit side, in 
red ink, the date and "net gain $116." 

(159) The inventory of Jersey Cows (including calves) is $725. Add this 
to the credit, subtract the debit, and find the net gain in the same manner as 
in Feterita. 

(160) In the same way, proceed with the following accounts, inventories 
given: Hogs, inventory, $900; Chickens, inventory, $100; Cane, inventory, 
$550; Corn, inventory, $1560; Oats, inventory, $450; Wheat, inventory, $410; 
Turkeys, inventory, $250; Produce, inventory, $100; Peanuts, inventory, $400; 
Cotton, inventory, $100 (seed on hand). 

(161) The Hood Lease (not Hood's personal account), shows a debit of 
$2,947.50, and a credit of $4,425. Taking the debit (or cost) from the credit 
side, leaves a net gain of $1,477.50. Write in red ink on the debit side "net 
gain $1477.50." 

(162) Handle the Meyer Lease in the same manner as the Hood Lease. 

(163) Bills Payable account is the same on each side, and therefore there 
can be no loss or gain. There can be no loss or gain on Cash account. J. F. 
Gordon, private, will pay this account into the business, so there will be no loss 
or gain on same. The J. F. Gordon Farm account is capital invested and is 
not taken up yet. 



FARM-RANCH BOOKKEEPING 27 

Lesson No. 15, continued. 

(164) MAKING OUT THE BALANCE SHEET. Ask your teacher for 
balance sheet paper ruled like that on page 29, or take come blank paper and 
rule it the same way yourself, writing "ledger accounts", "trial balance", "re- 
sources", "liabilities", "losses" and "gains' over the proper columns. The word 
"resource" means anything of value which you could turn into money. The word 
"liability" means anything for which you are going to have to pay. 

(165) Open your ledger and place your balance sheet before you. Write 
in the "ledger accounts" column, "J. P. Gordon Farm. ' Write on the credit 
side of the "trial balance" column, "67,915.'' Write in the "liabilities" column, 
"67,915." NOTE. $67,915. is the investment on this farm and must be re- 
turned, before there could be a gain. It is therefore a liability. 

(166) In the same manner as you entered the J. F. Gordon Farm, go 
through the ledger and enter all other accounts on the balance sheet, working 
them out as shown in the Model Balance Sheet, page 29. IMPORTANT. Study 
the model balance sheet before you try to work this out, and then see if you 
cannot do it all from memory, and from use of the principles you have learned. 

(167) This balance sheet will show you that the NET GAIN on the entire 
farm is $12,810.15. This added to the investment of $67,915, makes the present 
worth of J. F. Gordon Farm $80,725.15. In other words, if Gordon would now 
sell out for cash, he would have $80,725.15 cash on hand. 

(168) Gordon should pay in to the business the $528.55 he owes on per- 
sonal account. Enter on journal: Cash, reed, from J. F. Gordon, personal ac- 
count, $528.55. J. F. Gordon, credited in full by above payment, $528.55. Post 
this to ledger. 

(169) Open a Loss and Gain account in your ledger. On the left side 
write the names of all those accounts which show a loss on the balance sheet, 
and in the left hand column write the amount of the loss as shown on the 
balance sheet. Write on the right side of the loss and gain account the names 
of all those accounts that show a gain on the balance sheet, with the proper 
figures in the right hand column. When you find the difference between the 
total of the left hand column and that of the right hand column, you will have 
the net gain $12,810.15. Write in red ink, on the left side of the loss and gain 
account "net gain, transferred to J. F. Gordon Farm, $12,810.15." Enter this 
$12,810.15 on credit side of J. F. Gordon Farm, in black ink. 



FARM-RANCH BOOKKEEPING 28 

(170) On the debit side of the J. F. Gordon Farm account, write in red 
ink, "J. F. Gordon Farm, present worth, $80,725.15." Rule this account up 
and bring down inventory on credit side, in black ink, as shown on page 30. 

(171) Rule up Real Estate and bring down inventory on debit side in black 
ink. Rule up all other accounts having inventories in same manner. Those 
accounts not having inventories will balance, and the footings will be ruled up 
properly. 

(172) MAKE YOUR REPORT on Lesson 3 as follows: Mail in to your 
teacher your journal, ledger, trial balance book and balance sheet for approval. 

Figure out a Statement of Results, showing how much to the acre Gordon 
has made on each crop, and on which kind of stock or poultry he has made the 
most money, according to the amount of money invested. Mail this in also. 

Write teacher what you think of this set of Farm-Ranch Bookkeeping, and 
how much benefit you have received from same. Send all these reports to- 
gether. 

(173) If this work has been thoroughly satisfactory, your teacher will re- 
turn your books, approved, and also a CERTIFICATE stating you have finished 
this first set. 



FARM-RANCH BOOKKEEPING 



29 



Ledger Accounts 


Trial 


Balance 


Resources 


Liabilities 


Losses 


Gains 


J. F. Gordon Farm 




67,915. 




67,915. 






Real Estate 


50,000. 




50,000. 








Buildings and Fixtures 


8,300. 




7,885. 




415. 




Wagons and Trucks 


2,228.50 




1,800. 




428.50 




Farm Machinery 


2,182.30 




1,350. 




832.30 




Mules 


3,000. 




2,550. 




450. 




Horses 


400. 




400. 








Feterita 


89. 


180. 


25. 






116. 


Jersey Cows 


1,028. 


1,099. 


725. 






796. 


Hogs 


963. 


873.60 


900. 






810.60 


Chickens 


225. 


742.35 


100. 






617.35 


Notes Payable 


6,500. 


6,500. 










Cane 


305. 


203. 


550. 






448. 


Corn 


1,367.50 


2,728. 


1,560. 






2,920.50 


Oats 


729. 


1,200. 


450. 






921. 


Wheat 


512. 


900. 


410. 






798. 


Interest and Dis. 


260. 


3.75 






256.25 




F. M. Hood, personal, 














(balanced) 














C. L. Meyer, personal, 














(balanced) 














Hood Lease 


2,947.50 


4,425. 








1,477.50 


Meyer Lease 


2,238.75 


3,350. 








1,111.25 


Turkeys 


155. 


342. 


250. 






437. 


Produce 


306.50 


1,123. 


100. 






916.50 


Peanuts 


191. 


300. 


400. 






509. 


Cotton 


2,328.25 


7,400. 


100. 






5,171.75 


Expense 


6,005. 


4,696.75 






1,308.25 




Cash 


10,641.60 




10,641.60 








J. F. Gordon, personal 


528.55 




528.55 








Taxes 


550. 








550. 




Net Gain 










12,810.15 






17,050.45 


17,050.45 


Add Net Gain to 






Investment 








12,810.15 






J. F. Gordon Farm 






Present Worth 


1 






80,725.15 






Present Worth equals 






resources 


t 




80,725.15 

. 










103,981.45 


103,981.45 



















FARM-RANCH BOOKKEEPING 



30 



Model Ledger 



j. F. Gordon Farm 



1918 
Oct. 



31 Present Worth 



1917 
80,725.15 ^^^ , Inventory 

1918 
Oct. 21 Net Gain 



67,915. 
12,810.15 



1917 

Nov. 1 Inventory 



1918 

Oct. 31 Inventory 

1917 

Nov. 1 Inventory 



80.725.15 



1918 

Oct. 31 Present Worth 

REAL ESTATE 

1918 
50,000. Oct. 31 Inventory 



50,000. 

BUILDINGS and FIXTURES 

1918 

Oct. 31 Inventory 

Oct. 31 Net Loss 



8,300. 



80,725.15 



80,725.15 



50,000. 



7,885. 
415. 



1918 

Oct. 31 Inventory 



1917 

Nov. 

1918 

Jan. 

Feb. 

Mar. 

Apr. 

May 

June 

Jul. 

Aug. 

Sep. 

Oct. 



1 Inventory 

31 

28 

31 

30 

31 

30 

31 

31 

30 

31 



8.300. 



7,885. 

WAGONS and TRUCKS 

1918 



2,000. 



Oct. 31 Inventory 
Oct. 31 Net Loss 



23. 
55. 

4.50 

8. 
20. 
15. 
25. 

8. 
30. 
40. 



8.300. 



1,800. 
428.50 



1918 
Oct. 



31 Inventory 



2,228.50 



1,800. 



2,228.50 



FARM-RANCH BOOKKEEPING 



31 



Model Ledger 



CORN 



1917 
Nov. 
Nov. 
Dec. 
Feb. 
Mar. 
Apr. 
May 
June 
Sep. 
Oct. 
Oct. 
Oct. 



1 

30 
31 
28 
31 
30 
31 
30 
30 
31 
31 
31 



Inventory 



Net Gain 





1917 




640. 


Nov. 


1 


170. 


1918 




30. 


Sep. 


30 


87.50 


Sep. 


30 


50. 


Oct. 


31 


50. 


Oct. 


31 


75. 


Oct. 


31 


25. 






125. 






15. 






100. 






2,920.50 







Inventory 



640. 

1 ,800. 

70. 

50. 

168. 

1,560. 



1918 
Oct. 



4,288. 



31 Inventory 



1,560. 



LOSS and GAIN 



4,288. 





Oct. 31, 1918 






Losses 




Gains 




Buildings and Fixtures 


415. 


Feterita 


116. 


Wagons and Trucks 


428.50 


Cane 


448. 


Farm Machinery 


832.30 


Corn 


2,920.50 


Mules 


450. 


Oats 


921. 


Interest & Disct. 


256.25 


Wheat 


798. 


Expense 


1,308.25 


Hood Lease 


1,477.50 


Taxes 


550. 


Meyer Lease 


1,111.25 


Net Gain 


12,810.15 


Turkeys 


437. 






Cotton 


5,171.75 






Produce 


916.50 






Peanuts 


509. 






Chickens 


617.35 






Hogs 


810.60 






Jersey Cows 


796. 







17,050.45 






17,050.45 


1918 
Apr. 
Oct. 


30 
31 


NOTES 

2,500. 
4,000. 


PAYABLE 

1917 

Nov. 1 
1918 
Apr. 30 


2,500. 
4,000. 






6,500. 






6,500. 



FARM-RANCH BOOKKEEPING 32 

Part II. 

INTRODUCTION. Having completed Part 1, of Farm-Ranch Bookkeeping, 

■where you have kept records of the cost of raising various 
kinds of crops and stock, and figured out just how much net gain you have 
made on each, you should now be ready to profit by this experience, and to 
turn most of your attention to those things you find the most profitable. 

(175) The STATEMENT OF RESULTS shows you the net profit per acre 
on each kind of crop raised; also the percentage of gain on the investment in 
each kind of stock or poultry. Oats made the lowest average of profit per 
acre, but there are several things that should be said about this oat crop. In 
the first place, you have a large quantity of oat straw on hand, which h wcith 
considerable money. Then, again, all of your stock grazed on the green oats 
in the latter part of the winter. Had you sowed these oats in the fall, your 
cows, and all other stock, would have received much benefit. This is brought 
out here just to show you how many times we overlook the real value of certain 
things. 

(176) It will be seen that cotton raised by the Tenant or Renter System, 
made a very low average of profit per acre, even when the Tenant farmed on 
"halves." The tenants themselves made very good wages, but J. F. Gordon 
made only half as much net profit on the cotton land so farmed, as he did 
on that farmed by hired labor. In part II, no land will be leased to tenants. 

(177) Certain crops that have not been cultivated on a large scale before, 
have yielded a splendid profit. Stock and poultry have also shown surprising 
gains on amount invested. As the raising of certain crops can be made much 
more profitable in connection with stock raising, Gordon decides on the follow- 
ing: 

(178) POLICY FOR THE SECOND YEAR: To plant those crops that 
not only yield the best profits themselves, but that are of most assistance in 
raising stock; to specialize on the raising of fine stock and poultry which can 
always be sold at fancy prices; to build up a first-class dairy, etc. 

(179) This program is. based on FACTS. A certain breeder of fine hogs, 
located in the Southwest, has in a few years built up a business where his sales 
reach as high as $35,000. per annum. 

A few enterprising individuals, taking advantage of the climate and forage 
possibilities of the South, have within a short time developed one of the most 
remarkable dairies in the world. The animals from this dairy take off the 
highest honors in the national shows. The butter manufactured by this firm 
is unsurpassed, and one city alone, located more than a hundred miles from 
the dairy, consumes a thousand pounds of its butter each week. 

A small railroad system which runs through a region of the South formerly 
supposed to be poverty-stricken, has for several years been stressing DIVER- 
SIFICATION. The result is that a single branch of this railroad now ships 
as much as $5,000,000. worth of eggs per year, and the people along the entire 
system are now selling $90,330,000. more each year than they buy. 



FARM-RANCH BOOKKEEPING 33 

Lesson No. 16. 

Nov. 1, 1918. 

(180) STARTING OUT on another year. You will arrange to plant crops 
this year as follows: Corn, 200 acres; Cotton, 100 acres; Wheat, 100 acres; 
Oats, 50 acres; Produce, 50 acres; Cane, 25 acres; Peanuts, 25 acres; Feterita, 
10 acres; Sudan Grass, 10 acres; Alfalfa, 30 acres. 

(181) Write a contract with John Schmidt, as farm laborer for one year, 
@ $75. per month and board. 

(182) Write a similar contract with Felix Hansen; also hire Joe Black at 
$50. per month and board. No contract will be made with Black. 

Nov. 1 to Nov. 30, 1918. 

(183) As all grain, feed and cotton seed on hand will be used for stock, 
or for seed, charge Expense with the following total and credit each account 
for the proper amount: Feterita, $25; Cane, $550; Corn, $1,560; Oats, $450; 
Wheat, $200 (remainder of wheat will be sold for cash). 

(184) Total cash received during month: Eggs, $15; Milk, $80; Mules, 6 
head (sold because purchasing tractor) @ $150.00; Jersey Cows, 4 head (these 
cows were not good milkers) @ $60; Wheat, $210; Cotton, seed sold, $100; 
Produce, potatoes sold, $100. 

(185) Total cash paid out during month: Salaries and board (Gordon, 
$150; Schmidt and Hansen, $75 each; Black, $50; also $75 board for the 3 
hired men; total, $425, which charge to Expense); Farm Machinery (1 Twen- 
tieth Century Tractor, with plows), $1,500; Alfalfa (pump and irrigating plant 
to water 30 acres near river), $1,200; Hogs (1 registered male, @ $1,000 and 
5 registered sows, already bred, @ $300), total, $2,500; Jersey Cows (1 register- 
ed bull @ $1,500 and 15 fine blooded, fresh, cows @ $200), total, $4,500. 

(186) Credit Expense with total and charge each account as follows: Corn, 
breaking 50 acres @ $1; Wheat, breaking and seeding 100 acres @ $1.25, and 
100 bu. seed @ $2; Oats, breaking and seeding 50 acres @ $1.25, and seed, 
$100; Jersey Cows, feed, etc., $20; Chickens, feed, etc., $4; Turkeys, feed, $3; 
Hogs, feed, $25. 

(187) Gordon used following for family during month: Eggs, $5; Milk, 
$13. Make usual entries. 

(188) POST TO LEDGER in usual manner. If any of the accounts are 
becoming crowded, rule up and transfer footings to another page. Take trial 
balance. 

(189) MAKE YOU REPORT as follows: Send in your trial balance book, 
and your ledger; also the following: Contract with John Schmidt and contract 
with Felix Hansen. Ask any questions you wish. You should now be able to 
make entries neatly and correctly with little assistance. 



FARM-RANCH BOOKKEEPING 34 

Lesson No. 17. 

Dec. 31, 1918. 

(190) Total cash recd. for month: Milk, $405; Eggs, $50; Peanuts, sold 
for seed at fancy price, $350; Turkeys, 1,000 lbs. @ 30c. 

(191) Total cash paid out for month: Expense, salaries and board, $425; 
Chickens (2 fine blooded roosters @ $20 each, and 20 fine hens @ $5), total 
$140; Farm Machinery (gas for tractor, repairs, etc.), $18; Buildings and Fix- 
tures, paint for houses, fences, etc., $250; Jersey Cows, feed, $100. 

(192) Credit expense with total and charge each account as follows: Labor 
in painting houses, fences, etc., $100, which charge to Buildings and Fixtures; 
Corn, breaking 150 acres @ $1; Produce, breaking 50 acres @ $1; Cotton, 
breaking 100 acres @ $1 ; Jersey Cows (labor in milking, etc., $30; Hogs, corn 
fed them, etc., $150; Chickens, feed, $8; Turkeys, feed, $10. 

(193) Gordon's family used following during month: Eggs, $8, and chick- 
ens eaten, $6; Turkeys eaten, $11 ; Milk, $12; Produce, potatoes, etc., $4. 

(194) Gordon makes a contract with the Kingsburg Creamery Co. to sell 
them 1,350 gallons of milk each month @ 30c per gallon. The creamery is 
to send to the farm for milk each morning at 9 o'clock. Write this contract. 
It is very simple, and you should have no trouble in writing it. 

(195) Post to ledger and take trial balance. 

(196) Make your report on Lesson 17 as follows: On separate sheets of 
paper, send in copy of your journal for December, and your trial balance for 
December. Also send in the contract with the Creamery, for approval. 



FARM-RANCH BOOKKEEPING 35 

Lesson No. 18. 

Jan. 31, 1919. 

(197) Total cash reed, for month: Milk, $405; Market Eggs, $30, and 
ten settings from fine stock bought in December, @ $5 per setting; Hogs, 
40 head averaging 250 lbs. @ 10c. 

(198) Total cash paid out for month: Expense, salaries and board, $425; 
Jersey Cows (bran, cotton seed meal, etc., supply bought for three months, as 
feed is advancing in price), $300; Chickens, advertising sale of eggs, and crates 
for shipping, $7.50; Farm Machinery, gas for tractor, etc., $15; Wagons and 
Trucks, bill paid for two months, including tires, $80; Hogs, shipping charges, 
$82.50. 

(199) Expense credited and each account charged: Chickens, feed, $12; 
Hogs, feed, $150; Jersey Cows, labor, $30; Turkeys, feed, $3; Corn, harrowing 
200 acres @ 25c; Cane, breaking 25 acres @ $1 ; Feterita, breaking 10 acres 
@ $1; Sudan Grass, breaking 10 acres @ $1; Peanuts, breaking 25 acres @ 
$1 ; Buildings and Fixtures, painting, repairing fences, etc., $150; Produce, 
hauling manure and straw, $50. 

(200) Gordon's family used following during month: Eggs, $7; Milk, $13; 
Hogs (1,500 lbs. butchered @ 10c), $150. 

(201) Stock grazed on wheat during month. Charge as follows: Jersey 
Cows, $50; Hogs, $40; Expense (horses and mules grazing), $50. Credit wheat 
for entire amount. 

(202) Post to ledger and take trial balance. 

(203) REPORT on Lesson No. 17, the same as in December. 



FARM-RANCH BOOKKEEPING 36 



Lesson No. 19. 

Feb. 28, 1919. 

(204) Total cash recd. during month: Eggs (market eggs, $30, and 6 
settings eggs @ $5), total, $60; Milk, $405. 

(205) Total cash paid out for month: Expense, salaries and board, $425; 
Farm Machinery, gas, and repair bills at blacksmith shop, $25; Jersey Cows, 
large refrigerator for keeping milk in warm weather, $300; Alfalfa, gas and 
oil for running pump, $8. 

(206) Credit Expense and charge each account: Cotton, harrowing 100 
acres, $50; Jersey Cows, labor, $30; Alfalfa, labor in ditching and watering, 
$75; Corn, hauling rocks from land, and harrowing, $100; Chickens, feed, $7; 
Turkeys, feed, $3; Hogs, feed, $10. 

(207) Credit Oats with total and charge each account with proper amount, 
for grazing: Jersey Cows, $60; Hogs, $25; Expense (teams grazing), $50. 

(208) Gordon's Family used following during month: Eggs, $4; Milk, $12. 

(209) Post and take trial balance. 

(210) MAKE REPORT to teacher in the same manner as last month. 

Lesson No. 20. 

March 31, 1919. 

(211) Total cash recd. for month: Eggs, $40; Milk, $405. 

(212) Total cash paid out for month: Expense, salaries and board, $425; 
Farm Machinery, repairs, $5; Wagons and Trucks, 2 months bill, $23; Corn, 
seed for planting, $25; Cane, seed for planting, $40; Sudan Grass, seed for 
planting, $15; Produce, potatoes, and other seed, $125. 

(213) Credit Expense for following total and charge each account for 
the proper amount: Corn, planting 200 acres @ $1; Produce, labor in plant- 
ing, $50; Cane, planting, $25; Sudan Grass, planting, $10; Jersey Cows, labor, 
$30; Chickens, feed, $8; Turkeys, feed, $3; Hogs, feed, $20. 

(214) Credit Wheat for total and charge each account as follows: Jersey 
Cows, grazing, $60; Hogs, $20; Expense (teams grazing), $40. 

(215) Gordon's family used following for month: Eggs, $4; Milk, $12. 

(216) Post and take trial balance. How much cash have you on hand, and 
where is it? 

(217) MAKE REPORT on Lesson 20 as usual. 



FARM-RANCH BOOKKEEPING 37 

Lesson No. 21. 

April 30, 1919. 

(218) Total cash reed, during month: Eggs, $20; Milk, $405; Produce, 
$20. 

(219) Total cash paid out for month: Expense, salaries and board, $425; 
Farm Machinery, $16; Wagons and Trucks, $10; Jersey Cows, feed, $110; Hogs, 
advertising in "Farm and Ranch", and "Southland Farmer'', fine pigs for sale, 
$15; Feterita, seed, $10; Cotton, seed, $100. 

(220) Write an ad for each of the above papers, and send in to your teacher. 
You will find form for this advertising herewith. Study this ad until you can 
write one as good from memory. Also write letter to each of the above papers, 
enclosing the ad and check for $7.50 to pay for same. You will find model for 
this letter on page 38. All this should be enclosed with your monthly report. 

(221) Credit Expense for total and charge each account for the proper 
amount: Corn, plowing 100 acres @ 50c; Cotton, planting 100 acres @ $1; 
Produce, labor in planting and cultivating, $75; Feterita, planting, $10; Peanuts, 
planting 25 acres, etc., $50; Jersey Cows, labor, $30; Alfalfa, weeding same, 
$25; Chickens, feed, $8; Turkeys, feed, $3; Hogs, feed, $20. 

(222) Gordon's family used following during month : Eggs, $4; milk, $12; 
Produce, vegetables, $10. 

(223) Post to ledger and take trial balance. 

(224) MAKE REPORT as follows: Send in report same as last month, 
and do not forget to send copies of the two advertisements and the two letters. 
The Farm and Ranch is published at Dallas, Texas; the Southland Farmer at 
Houston, Texas. 



FARM-RANCH BOOKKEEPING 38 

Copy of letter enclosing advertisement. 

THE J. F. GORDON FARM and RANCH 

Pure Bred Jerseys, Hogs and Fine Poultry 

In connection with Standard Crops 

J. F. Gordon, Proprietor 

Kingsburg, Apr. 2, 1919. 

The "Farm and Ranch", 
Dallas, Texas. 
Gentlemen: 

Enclosed please find check for $7.50, for which insert attached advertise- 
ment in your next issue. I shall appreciate your giving this ad the best and 
largest space possible for the money. 

Trusting to have your most favorable attention, and thanking you in 
advance, I am, 

Yours very truly, 

(Signed) J. F. Gordon. 

Copy of ad 



Pore Bred Pigs For Sale 

Of the Famous PROSPERITY strain, Duroc Jerseys 

The finest all-round Hog ever bred in the South or Southwest; hardy, 
quick-growing, easy to keep. 

These pigs have been bred and raised under the most favorable con- 
ditions and are guaranteed to give satisfaction. Write NOW for prices 
and full information. 

The J. F. GORDON FARM and RANCH 
Kingsburg, 



FARM-RANCH BOOKKEEPING 39 

Lesson No. 22. 

May 31, 1919. 

(225) Total cash recd. for month: Eggs, $20; Milk, $405; Produce, $325; 
(produce includes potatoes, beans, beets, cucumbers, etc.); Hogs, sold 20 pure 
blooded pigs @ $40 each and 25 pigs from $1,000 male, mothers not pure breds, 
@ $25 each, total, $1,425. 

(226) Total cash paid out for month: Expense, salaries and board, $425; 
Cotton, labor in cultivation, $100; Jersey Cows, feed, $100; Hogs, crates for 
shipping pigs, $43; Wagons and Trucks, gas, etc., $8; Farm Machinery, repairs, 
etc., $14; Alfalfa, gas and oil for pumping, $9; Expense, bought grain for feed, 
etc., $125. 

(227) Credit Expense with total and charge each account for proper 
amount: Corn, plowing 200 acres @ $50c; Cotton, plowing 100 acres twice, @ 
50c each ;ime; Sudan Grass, plowing twice, $10; Jersey Cows, labor, $30; Cane, 
plowing drilled cane, and pulling weeds from sowed cane, $25; Feterita, plowing 
etc., $8; Produce, labor, etc., $100; Alfalfa, labor in watering, etc., $15; Chick- 
ens, $8; Turkeys, $5; Hogs, $20. 

(228) Credit Produce for the total and charge each item for the proper 
amount: Jersey Cows, $30; Hogs, $30. 

(229) Gordon's family used following for month: Eggs, $4; Milk, $12; 
Produce, $30. 

(230) Post and take trial balance. How much cash have you on hand, and 
where is it? 

(231) MAKE REPORT as follows: Send teacher your ledger, journal and 
trial balance books, in neat and accurate condition. 



FARM-RANCH BOOKKEEPING 40 

Lesson No. 23. 

June 30, 1919. 

(232) Total cash recd. for month: Eggs, $20; Milk, $405; Produce, $350. 

(233) Total cash paid out for month: Expense, salaries and board, $425; 
Cotton, labor in cultivation, $50; Jersey Cows, feed, $60; Alfalfa, gas and oil 
for pumping, $9; Jersey Cows, ice for two months, for refrigerator, $20. 

(234) Credit Expense with total and charge the accounts separately for 
proper amounts: Corn, plowing, $100; Cotton, labor, etc., $200; Produce, labor, 
etc., $75; Sudan Grass, plowing, $10; Cane, plowing, $10; Peanuts, plowing, 
etc., $10; Chickens, feed, $8; Turkeys, feed, $5; Hogs, feed, $15; Alfalfa, labor 
in watering, etc., $15; Jersey Cows, labor, $30. 

(235) Credit Oats with $75, green oats fed cows. Charge Jersey Cows 
for this amount. These oats were cut from around the "turning row", and 
were placed in the barn for two months feed. 

(236) Sold O. B. Wilson 5 full blooded pigs @ $40 each. Mr. Wilson is 
a neighboring farmer, whose note is good. He gave a three month's note for 
the above amount, with 8% interest. Write out this note. Make following 
entry on journal: Notes Receivable debited $200; and Hogs credited $200. 
When you post to the ledger, you must open an account with "Notes Receiva- 
ble", in the same manner that you did in Nov. 1917 with "Notes Payable", 

(237) Charge Hogs with produce fed them to amount of $60. Charge 
Jersey Cows with produce fed them to amount of $30; credit Produce for total. 

(238) Gordon's family used following during month: Eggs, $4; Milk, $12; 
Produce. $25. 

(239) Post and take trial balance. 

(240) MAKE REPORT as follows: Send in usual report to teacher, and 
also the note received from O. B. Wilson for the hogs. 



FARM-RANCH BOOKKEEPING 41 

Lesson No. 24. 

July 31, 1919. 

(241) Total cash reed, for month: E'ggs, $20; Milk, $405; Produce (melons 
etc.), $800. 

(242) Total cash paid out for month: Expense, salaries and board, $425; 
Cotton, labor in cultivation, $50; Corn (saving top fodder, $100; planting 
pumpkins and peas in corn field, together with seed, $30), total $130; Alfalfa, 
gas and oil for pumping, $16; Oats (twine, expense of cutting, sacks, threshing, 
etc., of 2,500 bu.), $250; Wheat (twine, sacks, and general harvesting costs of 
2,000 bu.), $300; Wagons and Trucks, 2 months, $50; Farm Machinery, $35; 
Jersey Cows, feed, $50. 

(243) Credit Expense with total and charge each account for proper am- 
ount: Corn, labor, $50; Cotton, labor, etc., $50; Produce, labor, $100; Feterita, 
plowing for 2 months, etc., $20; Cane, labor of cutting one crop, etc., $75; Pea- 
nuts, plowing, etc., $10; Sudan Grass, plowing, etc., $10; Alfalfa (cutting and 
baling, $75, and watering, $12), total $87; Jersey Cows, labor, $30; Oats, labor 
in harvesting, $100; Wheat, labor in harvesting, $150; Chickens, feed, $8; Tur- 
keys, $5; Hogs, $20. 

(244) Credit Oats with $100, sheaf oats placed in barn for feed, and charge 
Expense with that amount. 

(245) Charge Jersey Cows with $40, and Hogs with $60 produce fed them. 
Credit Produce for total. 

(246) Gordon's family used following: Eggs, $4; Milk, $12; Produce, $30. 

(247) Post and take trial balance. 

(248) MAKE REPORT the same as usual. 



FARM-RANCH BOOKKEEPING 42 

Lesson No. 25. 

Aug. 31, 1919. 

(249) Total cash reed, for month: Eggs, $25; Milk, $405; Produce, $250; 
Oats, 2,000 bu. <§' 62I/2C; Wheat, 1,500 bu. @ $1.75; Cotton, 13 bales, 6,500 lbs. 
21I/2C. 

(250) Total cash paid out for month: Expense, salaries and board, $425; 
Cotton, picking 8 bales, 12.000 lbs. @ 75c per C, and ginning 13 bales @ $5; 
Alfalfa, gas and oil for pumping, $12; Jersey Cows, feed, $80, and ice for two 
months, $20; Wagons and Trucks, $15. 

(251) Credit Expense for total and charge each account with the proper 
amount: Jersey Cows, labor, $30; Oats, hauling, etc., $50; Wheat, hauling, 
etc., $40; Cotton hauling, $65; pulling cockleburrs, $19.30, and picking 5 bales, 
7,500 lbs. @ 75c; Alfalfa, labor in watering, $15; Produce, labor, $30; Sudan 
Grass, cutting same, etc., $40; Peanuts, plowing, $10; Feterita, cutting seed, 
etc., $75; Chickens, feed, $8; Turkeys (fed entirely on waste grain in fields); 
Hogs, $25. 

(252) Gordon's family used following during month: Eggs, $4; Milk, 
$12; Produce, $14; Wheat, ground at mill for flour, $15. 

(253) Post to ledger and take trial balance. Are you having any trouble 
with your trial balances now? 

(254) MAKE REPORT to teacher as follows: Send in same report as 
usual, and be sure that you are prompt in doing so. 



FARM-RANCH BOOKKEEPING 43 

Lesson No. 26. 

Sept. 30, 1919. 

(255) Total cash reed, for month: Eggs, $25; Milk, $405; Cotton, 20 
bales, 10,000 lbs. @ 20c; Notes Receivable, $200; Interest and Discount, $4. 

(256) Total cash paid out for month: Expense, salaries and board, $425; 
Cotton, picking 14 bales, 21,000 lbs. @ 80c per C, and ginning 20 bales @ $5, 
also bill for sacks bought in August, $25; Jersey Cows, feed, $105; Jersey Cows, 
advertising calves for sale, in county paper, $5; Hogs, advertising hogs and 
pigs for sale in Farm and Ranch and Southland Farmer, $8; Chickens, adver- 
tising chickens and eggs in above paper, $5; Wagons and Trucks, repairs, etc., 
$65. 

(257) Credit Expense for total and charge each account for proper am- 
ount: Jersey Cows, labor, $30; Cotton, picking 6 bales, 9,000 lbs. @ 80c, and 
hauling 20 bales @ $5; Corn, gathering 4,000 bu. @ 2V2C per bu.; Produce, 
digging 1,500 bu. sweet potatoes, $125; Chickens, feed, $8; Turkeys, feed, $15; 
Hogs, feed, $125. 

(258) Gordon's family used for month: Eggs, $4; Milk, $12; Produce, 
$8. 

(259) Post and take trial balance. 

(260) MAKE REPORT as usual, and also send copies of the advertisements 
referred to above. 



FARM-RANCH BOOKKEEPING 44 



Lesson No. 27. 

Oct. 31, 1919. 

(261) Sold following: Eggs, $25; 50 fine chickens @ $3; 200 market 
chickens @ $1; 10 extra fine cockerels @ $5. Credit Chickens, charge cash. 

(262) Sold following: Milk, $405; 7 purebred male calves (8 and 10 mos.) 
@ $75; 4 calves @ $40; 4 cows (part of original herd) @ $100; five 2-year 
heifers @ 50. Make proper entries. 

(263) Sold following: 25 purebred pigs @ $40; 25 pigs @ $25; 10 hogs, 
averaging 250 lbs. @ 8c. 

(264) Charge Cash for total and credit proper accounts: Feterita, $550; 
Cane, 100 tons @ $10; Corn, 2,000 bu. @ 90c; Turkeys, 200 @ $3; Produce, 
1,500 bu. sweet potatoes @ $1; Peanuts, baled, $1,000; Cotton, 7 bales, 3,500 
lbs. @ 15c; Alfalfa, baled, $800. 

(265) Total cash paid out for month: Chickens, for advertising, $8; Jer- 
sey Cows, feed, $50; Hogs, for advertising, $15, for expressage on pigs, $40, for 
crates, $35; Expense, salaries and board, $425; Feterita, threshing, $35; Cane, 
baling wire, etc., $14; Peanuts, baling wire, etc., $6; Alfalfa, baling wire, $7; 
Cotton, picking 7 bales, 7,500 lbs. @ $1.40, and ginning 7 bales @ $5; Jersey 
Cows, ice for two months, $20; Produce, curing 1,500 bu. sweet potatoes @ 
10c; Wagons and Trucks, repairs, etc., $35; Farm Machinery, repairs, etc., $65; 
Taxes, $600. 

(266) Turned Hogs and Jerseys into cornfield and estimated value to each 
from eating corn, peas and pumpkins, as follows: Hogs, $200; Jerseys, $150. 
Charge these accounts and credit Corn. 

(267) Teams grazed on cane field and received $100 value. Charge Ex- 
pense with $100 (for teams), and credit Cane with $100. 

(268) Credit Expense with total and charge each account with proper 
amount: Jersey Cows, labor, $50; Chickens, feed, $8; Chickens, labor in ship- 
ping, $25; Turkeys, labor in shipping, $14; Hogs, labor in shipping, $40; Fet- 
erita, labor, $25; Cane, labor, $100; Corn, gathering 4,000 bu. @ 2l4c; Corn, 
gathering pumpkins in corn field, $25; Produce, digging 1,500 bu. sweet po- 
tatoes, $125; Peanuts, labor in baling, etc., $50; Alfalfa, labor in baling, etc., 
$75. 

(269) Sudan Grass was used for grazing purposes for five months: Charge 
Jersey Cows with $150, and charge Expense (teams) with $100. Credit Sudan 
Grass for total amount. 

(270) Gordon's family used following: Eggs, $4; Milk, $12; Turkeys, $10. 

(271) Post and take trial balance. 

(272) MAKE REPORT as follows: Get your journal, ledger and trial 
balance books in the best possible shape and mail them promptly to teacher 
for inspection and approval. 



FARM-RANCH BOOKKEEPING 45 



Lesson No. 28. 
Oct. 31, 1919. 

(273) FINDING PROFITS AND LOSSES. You will now proceed to find 
your profit or loss on each account (if any), as you did in October, 1918. Be- 
fore starting to do so, however, carefully review the manner of finding losses 
and gains, and of making the balance sheet, as given in the first set. Learn 
these principles so well, that you can do the work in set No. 2 from memory, 
and do not make it necessary to constantly look at the instruction book. 

(274) MAKE OUT THE BALANCE SHEET, and Loss and Gain account 
in the ledger, the same as in ffrst set. Following are the inventories: 

(275) Real Estate, $50,000; Buildings and Fixtures, $7,000; Wagons and 
Trucks, $1,620; Farm Machinery, $2,565; Mules, $1,300; Horses, $400; Feterita, 
none on hand; Jersey Cows, $5,100; Hogs, $4,300; Chickens, $330; Cane, $1,000; 
Corn, $4,800; Oats, $350; Wheat, $950; Turkeys, $100; Produce, $1,650; Pea- 
nuts, none on hand; Cotton, 20 tons seed @ $30; Alfalfa, pumping plant, $1,200, 
and baled alfalfa, $800; Sudan Grass, $150. 

(276) MAKE A STATEMENT of the gain on each crop per acre; also the 
gain on investment in each kind of stock, showing percentage of gain on each. 

(277) Collect the amount that "J. F. Gordon, personal" owes ($515). On 
the journal credit Gordon for this amount and charge cash. 

(278) RULE UP ALL ACCOUNTS in ledger, in the same manner as in 
first set, and take a trial balance of same to enclose with this report. 

(279) MAKE YOUR FINAL REPORT as follows: When you have com- 
plied with all of the above instructions, and have your books in neat order, 
send in your ledger, journal, trial balance book, balance sheet, etc., for final 
inspection and approval. 

(280) Having now finished this course, you should be able to apply such 
system and good management to the raising of crops and stock, as will make 
those professions pleasant and, profitable. We shall be glad to hear what you 
think of the course and its value to you; also your plans for the future. 

(281) A DIPLOMA will be granted you if your work has been satisfactory, 
same subject to any examination and rules approved by your teacher. 



LIBRARY OF CONGRESS 



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